A rate lock secures a specific mortgage interest rate for a set period, typically 30 to 60 days, protecting borrowers from market rate fluctuations during that time.
Benefits of a Rate Lock
- Rate Stability: Ensures the interest rate won’t change, even if market rates rise.
- Financial Certainty: Allows borrowers to plan and budget accurately with a fixed rate.
- Market Protection: Shields borrowers from rate volatility due to economic factors.
Rate locks provide peace of mind and financial predictability during the loan process.
